Your Debt Threat

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Are you trying your hardest to eliminate your debt but still having problems? Consolidation might be your best option.

Are You in Over Your Head?

Are you currently carrying around debt in excess of $10,000? Or, does it just feel like you are? Whether you’re saddled with thousands of dollars worth of credit card debt or just a couple hundred, only you know whether credit card consolidation is right for you.

Typically, a good credit card consolidation program is ideal for anyone who has suffered under the weight of debt and is starting to feel frustrated. Debt can be physically and emotionally hard to deal with for many people. But you don’t have to be one of those individuals. Often times, debt consolidation helps people cope with debt while providing options for paying it off.

If you’re suffering from debt, chances are debt consolidation could be a great option for you.

Finding the Right Consolidation Plan

If you’ve decided that debt consolidation is right for you and you’ve thought long and hard about what you want to accomplish by paying off your debt, it’s time to start thinking about what sort of plan is right for you. Debt consolidation programs of all sorts exist and, while they will all help you, some are more helpful than others.

For instance, have you thought about how long you would like to give yourself to pay off your debt? If you’re willing to work at it for several years, certain plans give you the freedom to make lower monthly payments and pay off your debt in a shorter amount of time. On the other hand, if you would like to rid yourself of debt quickly and painlessly, there are other options that give you the choice of making larger payments or settling your debt completely right away.

It’s all about knowing and understanding what you want to do with your debt consolidation plan.

Seeing What Works for You

Not everyone will benefit from debt consolidation. Most companies charge some sort of fee for helping you consolidate your debt and others may even control how you use your credit. For instance, are you willing to give up your credit cards completely? Many firms will not permit you to carry a line of credit on any card during the consolidation process.

Furthermore, are you willing to abide by their credit-fixing rules? You will need to stay on top of payments and be timely every month, or you may lose your right to consolidation. Find out what you’re willing to do and speak with a financial advisor before you make any moves in the world of consolidation. It can be extremely helpful and can help to save your credit score, but you should always understand what you’re getting into before you make your next move toward financial freedom.

Is an FHA Home loan Mortgage Right for You?

The days of putting just  little money down to buy a home are not over

After many years of risky home loans backed up by small down payments, most lenders aren’t underwriting mortgages without a large sum money for a  down payment and a high credit score. But a loophole can still put home buyers in a Florida home for little or no money down. FHA Mortgages insured by the Federal Housing Administration (FHA) allow Florida mortgage applicants  to get approved with a low down?payment as small as 3.5% of the purchase price and you  don’t require a high credit score.

Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

  No minimum FICO score or credit score requirements. FHA will allow a home purchase 1 year after a Bankruptcy. FHA will allow a home purchase2 years after a Foreclosure.

To take advantage of the FHA program in Florida, give us a call 1-954-667-9110 or use our quick application to find out more about the many FL mortgage programs we can make available. Or Apply now for a FL FHA home loan.

www.FHAmortgageFHAloan.com

As millions of Florida homebuyers have come to realize, getting into a Florida home for little money down has its disadvantages. Borrowers who’ve invested little money down on their home are often more willing to walk away from it during tough times rather than struggle with tough payments; this risk is further elevated when Florida home values are declining and troubled Florida mortgage applicants are unable to refinance or sell their Florida  home at a price that covers their losses.

Still, FHA home loans are far less risky than a subprime?or hard money loan that lenders originated before the housing bubble. FHA-insured mortgage loans require documentation and verifiable proof that the borrower is capable of making their mortgage payments. (In the past lenders didn’t require such proof.)

The looser terms of FHA home loans have helped make them more for Florida homebuyers. Today, FHA home loans  make up about 30% of the mortgage Florida mortgage market, up from 5% in 2005, The FHA commissioner David Stevens said in a speech earlier this month. In June, of  FHA insured over 200,000 FHA home loans – the highest monthly total in the agency’s history, according to Stevens. For fiscal year 2009, the dollar amount of FHA home loans  are likely to reach 30% of mortgage originations, up from around 5% in 2005 and 2006, says Stu Feldstein, the president of SMR Research, a mortgage-data tracking firm.

“FHA-insured?home loans  are one of the only games in town, especially if you can’t qualify for a traditional Florida mortgage,” says Thomas Martin, the chairman of the which trains and certifies mortgage lenders and brokers. “Now that the subprime market is gone, the FHA home loan is filling the void.

Here’s how to determine if an FHA-insured mortgage is right for you.

Do you meet the FHA home loan qualifications?

Most Florida mortgage applicants of FHA-insured mortgages have stable predicable income likely to continue with their credit history and debt load than a conventional mortgage loan might allow,

“When analyzing an FHA mortgage applicants  credit, we expect FHA mortgage lenders to examine the overall pattern of credit behavior rather than isolated occurrences of poor performance or relying solely on a credit score, This includes a borrower’s rental or mortgage payment history, debts, collections, previous foreclosures and bankruptcies. Borrowers with a credit score less than 500 must make a 10% down payment to  qualify.

Today, over 80% of FHA-insured purchase-mortgages belong to first-time Florida home buyers, thanks to looser requirements and the comparatively small 3.5% down payment, (Another perk is that borrowers are permitted gift assistance for the down payment from their friends, a family, employer or a government entity, but not the seller.)

Can you afford the costs?

Now, FHA mortgage  interest rates  and non-FHA mortgages aren’t much different. A 30-year fixed-rate FHA-insured mortgage had an average rate of 5.25% for the week ending Aug. 20, compared to an average rate of 5.44% for a 30-year fixed rate non-FHA mortgage,

However, there are unique fees that accompany an FHA mortgage. A mortgage applicant is required to pay 1.75% of the loan amount upfront, or that fee can be financed into the mortgage. FHA-insured mortgages also require a 0.55% annual premium based on the outstanding FHA  loan balance and financed into the mortgage. These fees pay for the FHA insurance that makes the loan possible,

A borrower who has a high credit score – typically a minimum of 720 – and a 20% down payment is often better off with a traditional non-FHA mortgage, which includes fewer fees. However, the math gets tricky when a borrower has a high credit score but a down payment less than 20%; in those cases, the borrower will have to pay for private mortgage insurance (PMI). Depending on your situation, PMI can cost less, the same or more than FHA mortgage fees.

What protections are in place for the FHA mortgage lender?

FHA mortgage Lenders are comfortable providing FHA mortgages because they don’t bear the loss if a mortgage applicant defaults on their payments and goes into foreclosure – the FHA does.

In such a scenario, the FHA pays the lender an insurance claim equal to the sum of the unpaid principal balance of the loan, foregone interest and a portion of the foreclosure expenses, The FHA pays for these losses by dipping into its insurance fund, which holds the insurance fees borrowers pay.

Getting into debt these days has become very easy. Credit card companies bombard us with offers in our mailbox, ads on TV, promotions in stores. If you can sign your name, it seems like you can get credit.

But what happens when you use so much credit that you can no longer pay your credit card bills every month?

And what happens when no matter how much you pay, your bills get bigger…and bigger…and bigger?

There are several strategies for getting out of debt.

All of them have their good points. And all of them have their bad points. Which one is right for you? Here is an overview of the different debt reduction options available to you:

Borrowing money from friends or relatives:

If you have a friend or relative who has enough money to help you get out of debt, consider yourself lucky. But think long and hard – and then think again – before choosing this option. While borrowing from a friend or relative can help you avoid the high cost of interest (if they are willing to give you the money without asking you to pay interest), borrowing money can hurt, or even ruin, your relationship. Everybody wants to pay back their “rich uncle” – but what happens if you don’t? Or you can’t? This can put both of you in an uncomfortable position. Even if the money is a gift, it can change your relationship entirely. So make sure to give this option a lot of thought before borrowing money from a friend or relative.

Credit counseling:

For many people, credit counseling is a good option. After all, inmost cases you can lower your interest rate, lower your monthly payment, and combine your credit card bills into a single payment. But be careful. There are LOTS of “non profit credit counseling” companies out there. And not all are created equal (and not all do what they say they will do). Before signing any paperwork, it is a good idea to ask lots of questions. And compares the fees and other program details. Just because a business is non-profit doesn’t mean there aren’t costs to you – and doesn’t mean you don’t need to shop around and compare programs!

Debt consolidation loan:

If you are fortunate enough to own a home (and you have enough equity to borrow money from your home’s value), a debt consolidation loan may be the way to go. In many cases, your interest may be tax deductible (but check with a tax professional first to make sure). And also think carefully about this option – because if you borrow “against” your home, and you cannot make the payments for whatever reason, you may risk losing your home! Fees, interest rates, and terms vary, so make sure to shop around for the best loan program for you!

Debt settlement:

If bankruptcy seems like the only option, then debt settlement (also called debt negotiation) may be a good alternative. The process of settling your credit card bills (paying them off for less than you owe) is a more aggressive approach to getting out of debt. But if you are behind in your payments, this can be a less drastic step than declaring bankruptcy. You will pay income taxes on the amount you save, but this amount is usually still much less than the amount you would have paid in interest. Before deciding on debt settlement, make sure you feel comfortable with such an aggressive strategy – and once again, shop around and compare terms and fees.

Bankruptcy:

Typically, bankruptcy is the last alternative. And with the new bankruptcy laws put into place in October 2005, you should consult with a bankruptcy attorney before considering this option. With good reason (for the most part), having your debts “written off” through bankruptcy has become more difficult. So, find a good lawyer, and discuss your options carefully.

Now, which of these debt reduction strategies is right for you?

There is no simple answer. The best advice is to check out all your options – very carefully – before deciding which strategy is best for you. Before signing up with any company:

• Ask lots of questions so you are comfortable with the company

• Learn how the process works, find out the fees, and get ALL agreements in writing

• Check with the Better Business Bureau to see if there are any unresolved complaints

And while being in debt is certainly very stressful, always remember that life is not entirely about money. Life is about making the most of each day, and being thankful for the things that you do have – while you are working on fixing the things you don’t!